Qingling Motors Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -26.2%.
The historical rank and industry rank for Qingling Motors Co's Gross Margin % or its related term are showing as below:
HKSE:01122'
s Gross Margin % Range Over the Past 10 Years
Min: 3.55 Med: 16.52 Max: 19.03
Current: 5.37
During the past 13 years, the highestGross Margin % of Qingling Motors Co was 19.03%. The lowest was 3.55%. And the median was 16.52%.
HKSE:01122's Gross Margin % is ranked worse than 93.46% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 19.79
vs HKSE:01122: 5.37
Qingling Motors Co had a gross margin of 6.98% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Qingling Motors Co was -26.20% per year.
Qingling Motors Co Gross Margin % Historical Data
The historical data trend for Qingling Motors Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Qingling Motors Co's Gross Margin %
For the Auto Manufacturers subindustry, Qingling Motors Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Qingling Motors Co's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Qingling Motors Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Qingling Motors Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Qingling Motors Co (HKSE:01122) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Qingling Motors Co had a gross margin of 6.98% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Qingling Motors Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Qingling Motors Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Qingling Motors Co Ltd is a Chinese company which is engaged in the production and sale of Isuzu light, medium, and heavy-duty trucks, pick-up trucks, multi-purpose vehicles, and diesel and petrol engines. It also focuses on the manufacturing and sales of automobile parts and accessories. The company organizes its business into five segments namely Light-duty trucks and chassis; Pickup trucks and chassis; Medium and heavy-duty trucks and chassis; and Automobile parts, accessories, and others. It also focuses on research and development activity for products, materials, mould and processes, and fixtures. The company earns the majority of its revenue from the sale of trucks and vehicles in the People's Republic of China.
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